GeoPark Announces 2018 Work Program and Investment Guidelines

BOGOTA, Colombia--(EON: Enhanced Online News)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a leading
independent Latin American oil and gas explorer, operator and
consolidator with operations and growth platforms in Colombia, Chile,
Brazil, Argentina, and Peru, today announced its work program and
investment guidelines for 2018. (All figures are expressed in US
Dollars).

A conference call to discuss Third Quarter 2017 financial results and
the 2018 work program and investment guidelines will be held on November
16, 2017 at 10:00 a.m. Eastern Standard Time.

2018: Continued production growth fully funded with operating cash
flow

GeoPark has approved a self-funded, risk-balanced work program for 2018
that will increase production by an estimated 15-20% and boost operating
cash flows. The Company screened over 100 different projects proposed by
its five country business units and selected the top 50 projects (30+
new wells) based on key technical, economic and strategic criteria.

The main focus of the work program will be to increase production and
develop the potential of the large Tigana/Jacana oil play in Colombia
with a 20+ well drilling campaign in Llanos 34 block (GeoPark operated,
45% WI). The program includes construction of a new flowline and
facilities to continue reducing operating and transportation costs.
These represent low-cost, low-risk, quick cash flow generating projects
with high expected economic returns.

Additional exploration drilling will be carried out in Colombia, Brazil
and Argentina during 2018.

James F. Park, Chief Executive Officer of GeoPark, said: “With a focused
and capital-efficient plan, GeoPark - as we are doing in 2017 - will
produce, develop, and explore our assets and meaningfully grow our
business in 2018 all funded by our own generated cashflow; with enough
firepower set aside for new attractive acquisition opportunities. We
believe this is the right formula for an E&P company to achieve enduring
success in today’s world. Our team is ready and excited about our
upcoming work program targeted to extend our 15- year track-record of
production and reserve growth - and adaptable to succeed in whatever oil
price scenarios prevail.”

OUTLOOK

GeoPark’s 2018 work program is described below and underscores the high
quality of the Company’s assets as well as its strong financial position.

2018 work program ($50-55 Brent): 15-20% production growth

Production target: 2018 average production of 31,500-32,500
boepd representing a 15-20% increase over 2017 average production, and
2018 exit production targeted at 34,000+ boepd.

Capital expenditure program: $100-110 million fully-funded by
cash flow from operations, to be allocated as follows:

Colombia - $85-90 million: Focused on continuing the
development and appraisal of the Tigana/Jacana oil play and targeting
new exploration prospects in Llanos 34 block. The work program in
Colombia includes:

18-19 development and appraisal wells and 2-3 exploration wells in
Llanos 34 block

Construction of a new 30-km flowline and additional facilities to
support production growth and continue reducing operating and
transportation costs

Argentina - $5-8 million: Focused on continued exploration
drilling in the Neuquen Basin with one exploration well in CN-V block
(GeoPark operated, 50% WI) and six gross exploration wells in Sierra
del Nevado and Puelen blocks (GeoPark non-operated, 18% WI).

Peru - $6-9 million: Focused on environmental impact studies
and preliminary engineering works and facilities in the Morona block
(GeoPark operated, 75% WI), with the goal of putting the field into
production by the end of 2019.

Brazil - $3-4 million: Focused on exploration drilling in the
Reconcavo and Potiguar onshore blocks (GeoPark operated, 70-100% WI).
The work program includes two shallow exploration wells and seismic
studies.

The 2018 work program is fully funded by operational cash flows and can
be adapted to provide production growth under different oil price
scenarios.

Above $60/bbl Brent oil price: Capital expenditures can be
increased to $120-150 million by adding incremental projects,
targeting production growth of 20-25%.

Below $50/bbl Brent oil price: Capital expenditures can be
reduced to $50-90 million – focusing on lowest-risk projects that
produce the fastest cash flow, targeting production growth of 5-10%.

GeoPark currently has commodity risk management contracts in place
covering 35-50% of its production for 1H2018. GeoPark monitors market
conditions on a continuing basis and may enter into new commodity risk
management contracts to secure minimum oil prices for its 2018
production and beyond.

Estimated operating netbacks

Consolidated operating netback per boe: Defined as net revenue
minus operating costs, royalties and selling expenses, is estimated to
be approximately $20-24/boe with a $50-55 Brent oil price,
approximately $25-29/boe with a $60-65 Brent oil price, and
approximately $16-20/boe with a $45-50 Brent oil price.

Adjusted EBITDA is defined as profit for the period before net
finance costs, income tax, depreciation, amortization, certain
non-cash items such as impairments and write-offs of unsuccessful
efforts, accrual of share-based payments, unrealized results on
commodity risk management contracts and other non-recurring events

Revenue, less production and operating costs (net of depreciation
charges and accrual of stock options and stock awards) and selling
expenses, divided by total boe sales volumes. Operating netback is
equivalent to adjusted EBITDA net of cash expenses included in
Administrative, Geological and Geophysical and Other operating costs

PRMS

Petroleum Resources Management System

SPE

Society of Petroleum Engineers

NOTICE

Additional information about GeoPark can be found in the “Investor
Support” section on the website at www.geo-park.com.

Rounding amounts and percentages: Certain amounts and percentages
included in this press release have been rounded for ease of
presentation. Percentage figures included in this press release have not
in all cases been calculated on the basis of such rounded figures, but
on the basis of such amounts prior to rounding. For this reason, certain
percentage amounts in this press release may vary from those obtained by
performing the same calculations using the figures in the financial
statements. In addition, certain other amounts that appear in this press
release may not sum due to rounding.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press release contains statements that constitute forward-looking
statements. Many of the forward-looking statements contained in this
press release can be identified by the use of forward-looking words such
as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’
‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among
others.

Forward-looking statements that appear in a number of places in this
press release include, but are not limited to, statements regarding the
intent, belief or current expectations, regarding various matters,
including expected 2017 and/or 2018 production growth and capital
expenditures plan. Forward-looking statements are based on management’s
beliefs and assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties, and
actual results may differ materially from those expressed or implied in
the forward-looking statements due to various factors.

Forward-looking statements speak only as of the date they are made, and
the Company does not undertake any obligation to update them in light of
new information or future developments or to release publicly any
revisions to these statements in order to reflect later events or
circumstances, or to reflect the occurrence of unanticipated events. For
a discussion of the risks facing the Company which could affect whether
these forward-looking statements are realized, see filings with the U.S.
Securities and Exchange Commission.

Oil and gas production figures included in this release are stated
before the effect of royalties paid in kind, consumption and losses.

BOGOTA, Colombia--(EON: Enhanced Online News)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE:GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with op... more »

BOGOTA--(EON: Enhanced Online News)--GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a leading independent Latin American oil and gas explorer, operator and consolidator with operation... more »